Showing posts with label home mortgage. Show all posts
Showing posts with label home mortgage. Show all posts
Wednesday, December 28, 2022

Applying For a Mortgage? Here’s What You Should Avoid Once You Do. Applying For a Mortgage? Here’s What You Should Avoid Once You Do. | MyKCM While it’s exciting to start thinking about moving in and decorating after you’ve applied for your mortgage, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan. Don’t Deposit Large Sums of Cash Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer. Don’t Make Any Large Purchases It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances. Don’t Cosign Loans for Anyone When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you. Don’t Switch Bank Accounts Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer. Don’t Apply for New Credit It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your interest rate and possibly even your eligibility for approval. Don’t Close Any Accounts Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score. Do Discuss Changes with Your Lender Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature. Bottom Line You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.

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  Applying For a Mortgage? Here’s What You Should Avoid Once You Do. While it’s exciting to start thinking about  moving in  and  decorating...
Wednesday, June 22, 2022

Things To Avoid After Applying for a Home Loan

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  Things To Avoid After Applying for a Home Loan Once you’ve applied for a mortgage to  buy a home , there are some key things to keep in mi...
Monday, December 27, 2021

Key Things To Avoid After Applying for a Mortgage

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  Key Things To Avoid After Applying for a Mortgage Once you’ve found your dream home and applied for a mortgage, there are some key things ...
Wednesday, November 24, 2021

How Smart Buyers Are Approaching Rising Mortgage Rates

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  How Smart Buyers Are Approaching Rising Mortgage Rates Last week, the average 30-year fixed mortgage rate from  Freddie Mac  inched up to ...
Tuesday, June 22, 2021

Pre-Approval Makes All the Difference When Buying a Home

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Pre-Approval Makes All the Difference When Buying a Home You may have been told that it’s important to get  pre-approved  at the beginning o...
Thursday, April 1, 2021

There’s No Reason To Panic Over Today’s Lending Standards

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  There’s No Reason To Panic Over Today’s Lending Standards Today, some are afraid the real estate market is starting to look a lot like it ...
Tuesday, March 30, 2021

How a Change in Mortgage Rate Impacts Your Homebuying Budget

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  How a Change in Mortgage Rate Impacts Your Homebuying Budget Mortgage rates are on the  rise  this year, but they’re still incredibly low ...
Monday, March 22, 2021

What Credit Score Do You Need for a Mortgage?

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  What Credit Score Do You Need for a Mortgage? According to data from the most recent  Origination Insight Report  by  Ellie Mae , the aver...
Wednesday, March 10, 2021

6 Simple Graphs Proving This Is Nothing Like Last Time

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  6 Simple Graphs Proving This Is Nothing Like Last Time Last March, many involved in the residential housing industry feared the market wou...